Are there any sharia compliant credit cards in UK

MishariA

Are there any banks or credit card companies that offer sharia compliant credit cards in the UK I know AlRayan bank and a few others offer current/savings accounts and mortgages however I can’t seem to be find any that offer credit cards.

Ben8282

I don't believe so. But if you repay in full every month you won't be charged interest and therefore could get round the problem that way.

jim1999

Would a charge card work?

Retired_Mortgage_Adviser

There used to be in the past but they never took off and the products gradually disappeared.


At the moment, afaik there are no banks or BSs that offer a Sharia compliant credit card.

SnowTiger

MishariA wrote: »

Are there any banks or credit card companies that offer sharia compliant credit cards in the UK I know AlRayan bank and a few others offer current/savings accounts and mortgages however I can’t seem to be find any that offer credit cards.

There's now more than 3 million Muslims living in the UK, so I think there will be pressure on banks to offer Sharia banking facilities.

IIRC LLoyds Bank and others offered Sharia bank accounts a few years ago, but seem to have abandoned them now.

Muslims may be more temped to use financial institutions aimed specifically at them, such as Al Rayan Bank.

A Sharia compliant credit card is an oxymoron. However, in other countries there are efforts to provide something similar: https://en.wikipedia.org/wiki/Islamic_banking_and_finance#Islamic_credit_cards.

I suspect in the real world Muslims are like people of other faiths: they pick and choose which parts of their religion they wish to comply with.

Jonathan_Kelvin

MishariA wrote: »

Are there any banks or credit card companies that offer sharia compliant credit cards in the UK I know AlRayan bank and a few others offer current/savings accounts and mortgages however I can’t seem to be find any that offer credit cards.

All are, you just need to pay them off in full each month.

Retired_Mortgage_Adviser

Why not?
(If there was a profitable market for the same)

Plenty of FCA regulated and FSCS protected sharia current accounts, savings products, ISAs, mortgages, BTL mortgages, etc in the UK market so it's quite natural to wonder if there are sharia CCs too.

If there was a big enough market for ccs, there would be. Banks want to make money, whatever your religion

Please see here for a full guide to sharia banking in the UK.
Why not?
(If there was a profitable market for the same)

Plenty of FCA regulated and FSCS protected sharia current accounts, savings products, ISAs, mortgages, BTL mortgages, etc in the UK market so it's quite natural to wonder if there are sharia CCs too.

If there was a big enough market for ccs, there would be. Banks want to make money, whatever your religion

Please see here for a full guide to sharia banking in the UK.

https://www.money.co.uk/savings-accounts/the-definitive-guide-to-sharia-banking-and-islamic-finance-in-the-uk.htm

!!! wrote: »

No

Why should there be?

18cc

A credit card is um well a credit facility so I suppose you are asking if there are any institutions offering credit at zero percent. Charge cards do this, but T&C say they need to be paid back in full each month so there is only free credit in the short time between spending and payment due dates.

There are also a number of interest-free credit cards where you get credit with zero interest for a set period but they need repaying in full at the end of the term to avoid paying interest.

You can also game the system by running a credit card with a positive balance thus never incurring credit. Although definitely against the T&C I suppose the only sanction they would have would be to ask you to stop and then close the account down but no idea if they would actually do this in practice.

rabialiones

dont think you can have positive balance on credit card, as once tried to pay a bit more than total balance, so would have to pay less next month, but payment would not be accepted, and was told could not pay more than total balance owing. on current statement
may vary with different cc's

18cc

One way you can definitely get a positive balance is eg with Lloyds - set up a DD for the full statement balance. This will be taken in full come what may even if you pay something off between statement date and payment days, thus putting the card into +ve balance

BoGoF

Surely putting a card into credit defeats the purpose of a credit card......why not just use a debit card?

If the answer to that is S75 protection then I believe there is some debate if you are actually covered by S75 for a purchase made from a credit balance on a card.

I may be wrong but sure I have previously read this.